Oppenheimer analyst Rick Schafer upgraded Analog Devices (ADI) following the surprise acquisition of Linear Technology (LLTC) for $60 per share in cash and stock. The analyst believes Analog is gaining a premium asset that, at the same time, will boost industry-leading metrics. Strategically, Schafer said the deal makes sense as it combines Analog's dominant converter franchise with Linear's highly complementary power management expertise while lowering Analog's consumer exposure. The analyst said the deal will be 20% accretive once synergies are realized and placed a new $80 price target on Analog Devices shares.

BofA raised the firm's price target on Texas Instruments (TXN) to $190 from $175 and keeps a Neutral rating on the shares. TI's small Q1 beat and inline but sequentially rising Q2 sales guidance, "while modest, potentially marks a recovery inflection in industrial chip demand," with positive read-across for U.S. peers such as Analog Devices (ADI), Microchip (MCHP), NXP Semiconductors (NXPI) and On Semiconductor (ON), the analyst tells investors. However, despite an expected recovery, TI's sustained high capex intensity could keep reported calendar year 2024-26 pro-forma EPS below $6 per share, the analyst added.